Online platform price parity clauses: Evidence from the EU Booking.com case
Andrea Mantovani (),
Claudio A. Piga and
European Economic Review, 2021, vol. 131, issue C
Online platforms often impose Price Parity Clauses to prevent sellers from charging lower prices on alternative sales channels. We provide quasi-experimental evidence on the full removal of Price Parity Clauses in France in 2015 for hotels listed on Booking.com. Our analysis reveals significant price decreases in the short run, but a more limited effect in the medium run. However, hotels characterized by a more complex organizational structure decreased their prices more substantially. Overall, the intervention appears to have benefited a subset of consumers using Booking.com.
Keywords: Price parity clauses; Online travel agents; Hotel pricing; Antitrust evaluation (search for similar items in EconPapers)
JEL-codes: D40 K21 L11 L42 L81 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:131:y:2021:i:c:s0014292120302555
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